At Upside Investments, property management serves as a vital tool for our investors rather than constituting a standalone venture.
As a sales-oriented company, we prioritize the use of our in-house property management services to instill post-closing confidence among investors. By ensuring familiar and trusted personnel on-site, our aim is to facilitate investors’ growth alongside ours. Importantly, our investors recognize that we have no incentive to inflate costs for additional profits through property management; instead, our primary revenue source stems from property resale. However, whether you choose to buy through us or independently, and should the need arise to seek another property manager, here are some pertinent questions to consider.
How Many Units Are You Currently Managing?
Understanding the number of units managed by a property management company provides insight into
its capacity for effective property handling. While opting for a smaller, “mom and pop” management
group might seem appealing for personalized attention, they may lack the resources and manpower to
address potential issues efficiently. It’s essential to consider both the scale and capabilities of the
management team when making your decision.
What Is Your Fee Structure?
Being transparent about fees and costs associated with the property management company you’re
considering is crucial for evaluating its financial impact on your investment. This transparency enables
you to calculate projected expenses and understand your overall projected Net Operating Income (NOI).
Obtaining this information upfront is advisable to preempt any potential issues in the future.
How Many Investors Are You Managing For?
This one is pretty straightforward. Ultimately, the more people that are utilizing this company, the
higher chances the company actually has their ducks in a row while also allowing a future outlook on the
company’s sustainability in the business. If the company manages 100, and 50 of those units come from
one client, then its unit count is irrelevant. Reason being, it doesn’t really signify a good customer base
to ensure consumer satisfaction. It’s also risky as if that one customer pulls their portfolio, the
company’s survivability would come into question. The more clients under the PM service, the better
chances things are running smoothly, or at the bare minimum, honestly.
What Are Your Primary Marketplaces?
While some property management firms operate nationally across various markets, many specialize in
specific regions. It’s crucial to determine their primary focus to ensure compatibility with your property’s
location and needs. For instance, a company specializing in suburban areas of Metro Detroit may lack
the expertise or resources to effectively manage properties within Detroit proper. Avoid assumptions
based solely on their location, and inquire directly about their service areas and capabilities.
How Are You Handling Maintenance and Repairs?
Addressing maintenance and repairs is arguably the most critical aspect of property management, as it
directly impacts the upkeep of a successful portfolio. It’s inevitable that properties will require maintenance, making it essential to understand how a property manager handles these tasks. You must
know whether they utilize an in-house maintenance team or outsource to third-party vendors.
Additionally, clarify how they communicate repair details to you and whether you receive bills directly
from repairmen or through the property manager. It’s crucial to ascertain if any additional fees are
charged on top of repair costs, ensuring transparency and understanding of the true cost of repairs.
How Many Property Managers and Employees Do You Have Working at Your
Company?
This is a straightforward one. If the property management company is managing five hundred units and
has one property manager servicing every unit, chances are you are not going to get a fast turnaround
time in response. Furthermore, issues are probably not going to get addressed as quickly. It is important
to understand how many property managers are working within the company and how many units are
assigned to each PM. Additionally, understanding how many employees are working under each
property manager is quite important too so that you can ensure your units will be taken care of
appropriately and efficiently.
How Do You Find and Screen Tenants?
Thorough tenant screening processes are crucial for minimizing risks and maintaining consistent rental
income streams in the long run.
How Do You and How Often Are You Communicating with Property Owners?
Effective and regular communication builds trust and ensures investors remain informed about their
property’s performance and any pertinent updates. At Upside Investments and Upside Property
Management, this emphasis on communication is paramount. While challenges are inevitable in
investing, it’s crucial to partner with a property management company committed to promptly
addressing any issues or relaying important information. Avoid the notion of “no news is good news”
and prioritize constant communication with your property management team, even during stable
periods.
What Types of Properties Do You Manage?
Understanding their expertise in managing specific property types ensures that investors’ portfolios
align with their investment goals and objectives.
How Long Have You Been in the Business?
A proven track record of experience in the field serves as a testament to success and stability, offering
investors a sense of confidence and assurance.
How do you collect and pay out rents? And when?
Understanding their rent collection and disbursement processes ensures smooth financial operations
and cash flow management.
Do You Have a Comprehensive Understanding of Fair Housing Law?
Compliance with fair housing laws is non-negotiable and ensures ethical and legal property management practices. A company must underscore their commitment to maintaining integrity and transparency in all aspects of their operations.
